BILL NUMBER: AB 2393	CHAPTERED  05/31/00

	CHAPTER   27
	FILED WITH SECRETARY OF STATE   MAY 31, 2000
	APPROVED BY GOVERNOR   MAY 30, 2000
	PASSED THE SENATE   MAY 25, 2000
	PASSED THE ASSEMBLY   MAY 1, 2000
	AMENDED IN ASSEMBLY   APRIL 4, 2000

INTRODUCED BY   Assembly Member Hertzberg

                        FEBRUARY 24, 2000

   An act to amend Section 1204 of the Health and Safety Code,
relating to health care facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2393, Hertzberg.  Clinics.
   Existing law provides for the licensure and regulation of clinics
by the State Department of Health Services.  Existing law authorizes
2 types of primary care clinics, community and free clinics.
   Existing law defines a community clinic as a clinic operated by a
tax-exempt, nonprofit corporation that is supported and maintained in
whole or in part by voluntary donations, bequests, gifts, grants,
government funds or contributions.  Existing law defines a free
clinic in a similar manner except that a free clinic is required to
be supported in whole  by specified donations and government grants,
and a free clinic is prohibited from directly charging a patient for
services and certain provisions.
   This bill would permit a free clinic to be supported in whole or
in part from those specified donations and government grants under
these provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1204 of the Health and Safety Code is amended
to read:
   1204.  Clinics eligible for licensure pursuant to this chapter are
primary care clinics and specialty clinics.
   (a) (1) Only the following defined classes of primary care clinics
shall be eligible for licensure:
   (A) A "community clinic" means a clinic operated by a tax-exempt
nonprofit corporation that is supported and maintained in whole or in
part by donations, bequests, gifts, grants, government funds or
contributions, that may be in the form of money, goods, or services.
In a community clinic, any charges to the patient shall be based on
the patient's ability to pay, utilizing a sliding fee scale.  No
corporation other than a nonprofit corporation, exempt from federal
income taxation under paragraph (3) of subsection (c) of Section 501
of the Internal Revenue Code of 1954 as amended, or a statutory
successor thereof, shall operate a community clinic; provided, that
the licensee of any community clinic so licensed on the effective
date of this section shall not be required to obtain tax-exempt
status under either federal or state law in order to be eligible for,
or as a condition of, renewal of its license.  No natural person or
persons shall operate a community clinic.
   (B) A "free clinic" means a clinic operated by a tax-exempt,
nonprofit corporation supported in whole or in part by voluntary
donations, bequests, gifts, grants, government funds or
contributions, that may be in the form of money, goods, or services.
In a free clinic there shall be no charges directly to the patient
for services rendered or for drugs, medicines, appliances, or
apparatuses furnished. No corporation other than a nonprofit
corporation exempt from federal income taxation under paragraph (3)
of subsection (c) of Section 501 of the Internal Revenue Code of 1954
as amended, or a statutory successor thereof, shall operate a free
clinic; provided, that the licensee of any free clinic so licensed on
the effective date of this section shall not be required to obtain
tax-exempt status under either federal or state law in order to be
eligible for, or as a condition of, renewal of its license. No
natural person or persons shall operate a free clinic.
   (2) Nothing in this subdivision shall prohibit a community clinic
or a free clinic from providing services to patients whose services
are reimbursed by third-party payers, or from entering into managed
care contracts for services provided to private or public health plan
subscribers, as long as the clinic meets the requirements identified
in subparagraphs (A) and (B).  For purposes of this subdivision, any
payments made to a community clinic by a third-party payer,
including, but not limited to, a health care service plan, shall not
constitute a charge to the patient.  This paragraph is a
clarification of existing law.
   (b) The following types of specialty clinics shall be eligible for
licensure as specialty clinics pursuant to this chapter:
   (1) A "surgical clinic" means a clinic that is not part of a
hospital and that provides ambulatory surgical care for patients who
remain less than 24 hours.  A surgical clinic does not include any
place or establishment owned or leased and operated as a clinic or
office by one or more physicians or dentists in individual or group
practice, regardless of the name used publicly to identify the place
or establishment, provided, however, that physicians or dentists may,
at their option, apply for licensure.
   (2) A "chronic dialysis clinic" means a clinic that provides less
than 24-hour care for the treatment of patients with end-stage renal
disease, including renal dialysis services.
   (3) A "rehabilitation clinic" means a clinic that, in addition to
providing medical services directly, also provides physical
rehabilitation services for patients who remain less than 24 hours.
Rehabilitation clinics shall provide at least two of the following
rehabilitation services:  physical therapy, occupational therapy,
social, speech pathology, and audiology services.  A rehabilitation
clinic does not include the offices of a private physician in
individual or group practice.
   (4) An "alternative birth center" means a clinic that is not part
of a hospital and that provides comprehensive perinatal services and
delivery care to pregnant women who remain less than 24 hours at the
facility.
